What is validation of debt?

Validation of debt is a process that involves the verification of a debt between a debtor and a creditor. This process is important in order to ensure that the debt is legitimate and that all parties involved are aware of and understand the terms of the agreement. In Washington, validation of debt is required by the Uniform Debt-Management Services Act of 2009. In this act, debt validation is defined as the “process of verifying that the terms of a debt are correct.” The validation process involves three steps. First, the creditor must provide written notice to the debtor that includes the terms of the debt and, if applicable, any legal remedies available to the creditor. Second, the debtor must be given an opportunity to dispute the terms of the debt. If the debtor disputes the debt, the creditor must provide verification of the debt to the debtor. Lastly, if the dispute is still unresolved, the creditor must file a lawsuit in order to prove the validity of the debt. Validation of debt is important for both parties involved. For the debtor, it is important to ensure that the debt is valid and that they understand the terms of the agreement. For the creditor, it is important to prove they are owed the money and that the terms of the agreement are correct. It is crucial that both parties are aware of, understand, and agree to the terms of the debt.

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